R. Jesse McWaters | October, 2017ust 2018

Beyond Fintech: A pragmatic assessment of disruptive innovation in financial services

Financial Services Club – London

The World Economic Forum has spent the past four years exploring the evolving landscape of financial services

By working with leading incumbents…

Davos-Klosters, Switzerland

London, United Kingdom

New York, Boston, & San Francisco, USA

Tianjin & Shenzhen, China

Toronto, Canada

Hong Kong, SAR

…and with leading innovators

Through dozens of interactive workshops held in financial capital around the world

Singapore Sydney, Australia

The outlook on the future of financial services has evolved rapidly….

….so what’s next?

Where is financial services today?

Fintechs have materially changed the basis of competition in financial services...

Key Takeaway

…but they have yet to

disrupt the competitive

landscape

Incumbents have rapidly adapted fintech solutions to fit their needs…

…while customers have been reluctant to adopt new products or providers

12 Million Users

450 Million Users

Where is financial services going?

Incumbents are looking outside of their organizations to cut costs…

…making financial services value

chains more modular

As financial value chains become more modular they become more susceptible to disruption…

…setting the scene for new financial

operating models

Multi-provider platforms are becoming the dominant delivery channel for financial services…

…raising the question of who will

emerge as a platform, and who

will be a provider

Providers of financial products will face new imperatives in a platform world..

…that could lead to fewer bigger

winners

Data will be critical to creating a successful customer-centric financial platform…

…but creating diverse data flows

will be more important than

existing data stocks

Financial institutions are on a quest to replicate the capabilities of technology firms…

…putting them at risk of

dependency and strategic

vulnerability

Financial operating models around the world are rapidly diverging…

…creating challenges for

international regulatory

coordination

Questions for the future…

Key Questions….

1 For Incumbents

Who are the partners that you are going to work with to execute on your strategy, and how are

you going to work with them?

2 For Fintechs

How can you piggy-back on the needs of incumbents to achieve scale or establish a niche?

3 For Regulators and Supervisors

How will you map the rapidly changing financial landscape at home and abroad?